It is customary in industrial lunch rooms and offices where beverages are dispensed to utilize a rigid cup holder into which is inserted a thin flexible cup liner. The liner is truncated in shape with a flange at the bottom which snaps into position at the bottom of the holder. The cup holder can be made of a rigid plastic and will be retained at the dispensing location. The cup liners are usually stacked in cardboard containers and various devices are available for dispensing the liners one at a time from the stack prior to insetion into the cup holder.
It is also desirable to have a dispenser for the cup holders since they are more expensive than the liners and are reused at the serving location. A device for dispensing cup holders is disclosed in U.S. Pat. No. 3,788,487. In this device, the cup holders are placed in a cylindrical passage with the cup handles sticking out through an open slot in the side of the passage. However, it is necessary to lift each cup holder upwardly in the reverse direction from which it was inserted in the passage in order to remove it. Thus, when only several cup holders are at the bottom of the passage, it is necessary to move these cup holders a considerable distance in order to remove them.